Discretionary Policy versus Non-Discretionary Policy in the Economic Adjustment Process
AbstractThe study aims to examine the concept of automatic fiscal stabilization in the context of macroeconomic adjustment policies. To this end, first a conceptual distinction between discretionary public adjustment policies and non-discretionary ones is achieved. Second, sufficient and necessary attributes for an automatic fiscal stabilizer are identified and examined, in order to obtain a definition of this instrument. The whole research approach is characterized by a logical and abstract way of thinking, to provide a general and non-contextual result. Finally, a general mechanism of action of automatic fiscal stabilizers is proposed, by introducing the basic concepts of action base and of action rate of such an instrument.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.
Volume (Year): (2010)
Issue (Month): 4 (December)
Contact details of provider:
Postal: Casa Academiei, Calea 13, Septembrie nr.13, sector 5, Bucureşti 761172
Phone: 004 021 3188148
Fax: 004 021 3188148
Web page: http://www.ipe.ro/
More information through EDIRC
sustainability; fiscal policy; automatic fiscal stabilizers; discretionary versus nondiscretionary; principle of the minimal action;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schabert, Andreas, 2005.
"Discretionary Policy, Multiple Equilibria, and Monetary Instruments,"
CEPR Discussion Papers
5400, C.E.P.R. Discussion Papers.
- Andreas Schabert, 2005. "Discretionary Policy, Multiple Equilibria, and Monetary Instruments," Tinbergen Institute Discussion Papers 05-098/2, Tinbergen Institute.
- Schabert, Andreas, 2005. "Discretionary policy, multiple equilibria, and monetary instruments," Working Paper Series 0533, European Central Bank.
- Maria Antoinette Silgoner & JesÃºs Crespo-Cuaresma & Gerhard Reitschuler, 2003. "The Fiscal Smile," IMF Working Papers 03/182, International Monetary Fund.
- Alan J. Auerbach & Daniel Feenberg, 2000.
"The Significance of Federal Taxes as Automatic Stabilizers,"
NBER Working Papers
7662, National Bureau of Economic Research, Inc.
- Alan J. Auerbach & Daniel R. Feenberg, 2000. "The Significance of Federal Taxes as Automatic Stabilizers," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 37-56, Summer.
- Alan Auerbach, 2002.
"Is There a Role for Discretionary Fiscal Policy?,"
NBER Working Papers
9306, National Bureau of Economic Research, Inc.
- Alan J. Auerbach, 2002. "Is there a role for discretionary fiscal policy?," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 109-150.
- Paul Hiebert & Javier J. Pérez & Massimo Rostagno, 2002.
"Debt reduction and automatic stabilisation,"
Economic Working Papers at Centro de Estudios Andaluces
E2002/12, Centro de Estudios Andaluces.
- Andres, Javier & Domenech, Rafael, 2006.
"Automatic stabilizers, fiscal rules and macroeconomic stability,"
European Economic Review,
Elsevier, vol. 50(6), pages 1487-1506, August.
- Javier Andrés & Rafael Doménech, 2003. "Automatic stabilizers, fiscal rules and macroeconomic stability," Banco de Espaï¿½a Working Papers 0314, Banco de Espa�a.
- Darrel Cohen & Glenn Follette, 2000.
"The automatic fiscal stabilizers: quietly doing their thing,"
Economic Policy Review,
Federal Reserve Bank of New York, issue Apr, pages 35-67.
- Darrel Cohen & Glenn Follette, 1999. "The automatic fiscal stabilizers: quietly doing their thing," Finance and Economics Discussion Series 1999-64, Board of Governors of the Federal Reserve System (U.S.).
- Barrell, R. & Pina, A.M., 2000.
"How Important are Automatic Stabilizers in Europe? A Stochastic Simulation Assessment,"
Economics Working Papers
eco2000/2, European University Institute.
- Barrell, Ray & Pina, Alvaro M., 2004. "How important are automatic stabilisers in Europe? A stochastic simulation assessment," Economic Modelling, Elsevier, vol. 21(1), pages 1-35, January.
- Suescun, Rodrigo, 2007. "The size and effectiveness of automatic fiscal stabilizers in Latin America," Policy Research Working Paper Series 4244, The World Bank.
- Campeanu, Emilia Mioara, 2011. "The Stabilising Role Of The Fiscal And Budgetary Policies Within The Simplified Keynesian Model," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 15(2), pages 119-138.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Corina Saman).
If references are entirely missing, you can add them using this form.